CBDCs (central bank digital currencies) are basically fiat money, but in digital form. Each country issues its own through its central bank, so technically it's what you already know: pesos, dollars, euros… just in blockchain.
Now, here's where it gets interesting: although they are sold as “cryptocurrencies,” they are a rare hybrid. They are not decentralized like Bitcoin. They operate on private blockchains controlled 100% by central banks. This means that governments still have all the control, but they use blockchain technology to make it more efficient.
What is the difference then?
Real crypto = decentralized, without intermediaries, you have control
CBDC = centralized, in the hands of the central bank, blockchain is just the technological tool
It's not the same to put fiat money into blockchain as to create a true cryptocurrency. CBDCs are the future of state digital money, but they have nothing to do with the decentralizing philosophy of crypto.
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What are CBDCs? The truth behind central bank digital coins
CBDCs (central bank digital currencies) are basically fiat money, but in digital form. Each country issues its own through its central bank, so technically it's what you already know: pesos, dollars, euros… just in blockchain.
Now, here's where it gets interesting: although they are sold as “cryptocurrencies,” they are a rare hybrid. They are not decentralized like Bitcoin. They operate on private blockchains controlled 100% by central banks. This means that governments still have all the control, but they use blockchain technology to make it more efficient.
What is the difference then?
Real crypto = decentralized, without intermediaries, you have control
CBDC = centralized, in the hands of the central bank, blockchain is just the technological tool
It's not the same to put fiat money into blockchain as to create a true cryptocurrency. CBDCs are the future of state digital money, but they have nothing to do with the decentralizing philosophy of crypto.